Sell the apartment, take the interest, and build anew

Hello,

we surprisingly received an approval for a plot from the city yesterday, a 5-minute walk from my workplace. The problem is, we no longer expected this and bought an apartment 2 years ago; registration was 3 years ago.

According to the bank, we can take over the loan at the interest rate of 1.1%, amounting to 370,000. Now about the apartment, new building bought 2 years ago for 480,000. The equipment looks good, complete KNX full equipment, dual split air conditioning, large oiled oak floorboards, 120 sqm garden.

Now about us: 2 adults, one child 1.5 years old. Equity 20,000, the rest is tied up in the apartment. My monthly net income for 35 hours is 3,800€ *13.3 salaries, from next year definitely 40,000€ @ 35h. Hours can be increased with corresponding earnings (37.5h => 7% more). My wife currently earns 1,200€ in her internship, which will last about 1 more year. I don't want to count child benefits.

Now about the plot: Received from the city in a lottery process, ground-level newly developed semi-detached house 450 sqm, price 580€/sqm (quite a rip-off). Total plot cost approx. 250k.

Now the question is, is it feasible for us to build here given the current construction prices? We would certainly need to borrow some more from the bank.

I can only reply briefly right now.

Neubau gekauft vor 2 Jahren für 480000.

What is the apartment worth today? Probably less given the current interest rates?

Wir müssten sicher noch was aufnehmen von der Bank

Definitely! How big/expensive is the new building supposed to be?

Meine Frau verdient gerade im Referendariat 1200€, das geht noch ca 1 Jahr.

How about just buying the land now and building on it in a few years? For example, after becoming a civil servant? Is there a building obligation?

Prices are stable here with us. I expect plus or minus 0. I don't have the prices in mind, but a semi-detached house with 140 sqm is enough for us. We can do the flooring, doors, and electrical work ourselves. There is a building obligation within 3 years, but this can be negotiated with the municipality. They probably thought they could make a quick profit now, but then the crisis came. Oh yes, construction is happening near Emmendingen, that is also where the apartment is located. The apartment also has, as one of the few, a car charging spot with 11 kW.

What are the current construction prices like? Still very high? We would like to build extensively with a prefabricated house provider.

I would calculate with 3,500 per m2 plus additional construction costs, garage, garden, etc. The standard should remain upscale.

Take a look at the parallel threads on this.

It should be upscale, although we are also satisfied with wallpaper. However, flooring and KNX are important to us.